It would, and I think their lack of action in this area makes it clear that google must not want to combat duplicate/scraped content. It's in their best interest (short-term, I don't know if it will be long term) to let people do whatever unsavory stuff they want to, as long as it helps sell ads.
I remember noticing on Google's Q4 2010 earnings report that the revenue they got from Adsense for Content happened to be almost exactly the same amount of 'free cash' flow they had that quarter. So clearly its not something they would be interested in jeopardizing.
